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Qabil Ashirov

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Germany's flagship carrier Lufthansa reported a sharp decline in second-quarter profit, as soaring aviation fuel prices and a week-long pilot strike offset stronger revenue growth and robust travel demand, AzerNEWS reports.

According to local media cited by AZERTAC, the airline's net profit fell 56% year-on-year to €383 million during the second quarter of 2026.

The company attributed the decline primarily to a surge in jet fuel (kerosene) prices linked to the conflict involving Iran, as well as the financial impact of a one-week pilot strike in April.

Fuel expenses increased by approximately €750 million compared with the same period last year, while the industrial action cost the airline an additional €150 million.

Despite the profit slump, Lufthansa's revenue rose 8% year-on-year to €11.1 billion in the second quarter, reflecting resilient passenger demand.

The airline expects its 2026 operating profit to range between €1.7 billion and €2.2 billion, maintaining its full-year outlook despite ongoing geopolitical and cost pressures.

Lufthansa also reported stronger earnings from its air cargo and aircraft maintenance businesses. In addition, the company said demand for premium-class travel and Asian routes remained strong.

The conflict involving Iran and disruptions affecting the Strait of Hormuz have significantly increased costs across the global aviation industry by driving up fuel prices and creating operational challenges.

In recent weeks, several major airlines—including International Airlines Group (IAG), Air France-KLM, EasyJet, American Airlines, and Ryanair—have also reported weaker profits as rising operating costs and geopolitical uncertainty continue to weigh on the sector.